Mike's Memo

Budget Agreement Announced

Late last week, leaders from the Senate Republican, House Democratic, and Senate Democratic caucuses announced an agreement in principle for a 2009-2010 state budget. The agreement calls for the adoption of a $27.945 billion spending plan. It uses a combination of one-time revenues and recurring revenues to produce a balanced budget for 2009-10 which maintains adequate funding for core government services and basic education. 

Among the revenue sources included in the plan are a slowdown in the phase-out of the Capital Stock and Franchise Tax (raises $373.9 million in 2009 – 2010 and $550.6 million in 2010 – 2011); introduction of table games at Pennsylvania's casinos ($200 million in additional revenue); a 25-cent per pack increase in the cigarette tax ($97.2 million); $755 million from the state’s Rainy Day Fund; increase Marcellus Shale leases ($100 million); $143 million transfer from the Oil & Gas Lease Fund; $150 million from the Tobacco Endowment account;  establishment of a tax amnesty program (estimated $100 million in revenue); and a new tax on small games of chance ($100 million in revenue). 

The House-Senate Conference Committee will finalize details shortly.  I look forward to seeing more specifics prior to voting on the budget. 

Senate Session

The Senate met last Wednesday to position a number of bills for future consideration.  The full Senate also unanimously approved Senate Bill 974, which would preserve people’s existing lease agreements with the Commonwealth should the state decide to close, restrict access, or otherwise reduce service at State Parks.  The Senate also unanimously approved a number of Executive Nominations, including Rick Bloomingdale, chair of the Unemployment Compensation Board of Review. 

The Senate is scheduled to be in Session all this week.

For more information on these issues or other legislative and state topics, or if you are unable to open the bill links, visit the Pennsylvania General Assembly website at www.legis.state.pa.us. You may also want to visit "News for Constituents", a comprehensive look into various issues affecting Pennsylvanians across the Commonwealth.

Please feel free to contact me at any time on state-related issues that are of concern to you.  I may be reached through e-mail at mfolmer@pasen.gov, my website, or any one of my offices listed below.